A pair of homebuilders recently purchased a combined 67 lots in separate residential developments, according to documents filed with the East Baton Rouge Parish Clerk of Court’s office.
Alvarez Construction Co. LLC, represented by Carlos Alvarez, purchased 49 lots in the Afton Oaks townhome community from Afton Oaks Zachary LLC for $2.8 million in a deal filed Monday. Arthur Lancaster represented Afton Oaks Zachary LLC.
Meanwhile, national homebuilder D.R. Horton purchased 18 lots in the Pelican Lakes development in south Baton Rouge from Pelican Parkway LLC for $1.3 million. Lancaster represented Pelican Parkway LLC in the deal, and Jake Lambert represented D.R. Horton.
The Baton Rouge residential real estate market experienced record growth from 2019 to 2021, but that growth slowed significantly in 2022 and 2023, according to data presented at the Trends seminar earlier this year.
Dollar volume dropped 9.55% from 2021 to 2022 and 24.35% from 2022 to 2023. That metric, which peaked in 2021 at almost $3.8 billion in sales for all homes, fell to about $2.6 billion in 2023. Dollar volume had been steadily increasing since 2015, before the downturn in 2022.
Median home prices, meanwhile, increased by 1.57% from 2022 to 2023. According to the latest report from the Greater Baton Rouge Association of Realtors, median home prices were up 2.8% at the end of June compared to last year.
All market indicators signal that the residential real estate market will continue to slow, largely due to high interest rates and a lack of population growth.
Market conditions are unlikely to change much in 2024, as interest rates are unlikely to fall as much as previously expected and construction costs remain high.
[crowdsignal poll=14114300]
